Venture capital investment structure

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article’s content and its accuracy. We may not share the views of the author. VCTs can be an invaluable financial planning venture capital investment structure, both leading up to and in retirement.

VCTs offer adventurous investors the chance to invest in small firms to help them grow. As this is a crucial area, the government offers generous tax breaks to VCT investors, but they are higher-risk and longer term than conventional investments. The VCTs detailed below are those currently available through Hargreaves Lansdown. This is not a personal recommendation. If you are unsure any investment is suitable for you, seek advice.

You should only consider VCTs if you can afford to take a higher level of risk than mainstream investments. Like all investments, their value will fall as well as rise. You should hold them for the long term, but even then you could still get back less than you invest. Please remember, the value of tax savings will depend on your circumstances and tax rules can change over time. The dates shown below and in the VCT Prospectuses are the VCT Manager’s own deadlines. We advise you to ensure that your VCT application reaches Hargreaves Lansdown by the preceding business day.

All applications should be made on basis of the information contained in the Prospectus. Please ensure you read and understand the Prospectus and any Supplementary Prospectus before investing. Free guide to VCTs A clear, jargon-free introduction to this tax-efficient and speculative way to invest. Register for VCT updates Sign up today and receive details of new VCT offers direct to your inbox.

It is an approach that has worked well and long-term investors have seen good results. They also look for strong management teams and businesses that can potentially take a big share of their market. They invest in entrepreneurial businesses with proven management teams. Then they work with these companies to help them achieve their full potential, by making operational improvements or growing sales, for example. Both VCTs are managed using the same strategy. VCTs should only be considered by sophisticated investors with significant investment portfolios who can take a long-term view and are comfortable with higher risks.